According to Wedbush analyst Dan Ives, Tesla’s fourth-quarter results are an early sign that the pioneering car company has entered a new phase. Tesla beat estimates for fourth-quarter revenue and profit. However, its automotive gross margin came in at 25.9%, down from more than 30% a year ago. That drop shows Tesla is having to aggressively price to protect its edge, as the rest of the auto industry races to catch up to the electric vehicle space, Ives said Wednesday. . “Ultimately, they need to sacrifice margins in exchange for volume. And the question now is, with the price war going on in China, what will the trajectory look like in 2023,” Ives said. said on CNBC’s “The End Bell: Overtime” on Wednesday. Tesla has clearly made widespread price cuts in recent weeks, which may be partly due to increased competition. “It’s what I consider a moment of truth for Tesla. Will they be able to ramp up deliveries – which we believe they can – as well as scale and maintain margins. , which has outstripped the industry,” said Ives. Tesla has maintained its long-term outlook for 50% compound annual growth in vehicle deliveries, but predicts 1.8 million units for 2023 will fall below that. Ives said it was smart for the company to come up with a more realistic figure in an uncertain economic environment.